Tapestry, Ralph Lauren, Birkenstock: Entry-level luxury thrives as China slows on high-end

What happened While the likes of LVMH and Burberry reel from weakening demand in China, Tapestry, Ralph Lauren, and Birkenstock reported robust quarterly results in the market this month, underscoring China and the wider Asia-Pacific region as critical engines of luxury growth. On Friday last week, Tapestry posted a Fiscal Q4 2025 Greater China sales surge of 18% YoY, with revenue hitting $273 million, making this region its fastest-growing market. Its U.S. business swung to a Q4 2024 net loss of $517 million on an impairment at Kate Spade. Coach remained a bright spot with double-digit gains, helping offset weakness at Kate Spade and the divestment of Stuart Weitzman. Ralph Lauren’s earnings call on August 7 revealed a strong start to fiscal 2026, with Q1 profit climbing 31% YoY to $220 million on revenue growth of 14%. Asia led regionally, rising 21% to $474 million, including a 30% jump in China, fueled by brand activations such as its first Shanghai fashion show. On August 18, Birkenstock reported a continuation of its recent momentum. Fiscal Q3 revenue rose 16% YoY at a constant exchange rate to 635 million euros ($740.6 million) and profit leapt 73% YoY. Asia-Pacific sales rose 24% on the back of new store openings, positioning the German footwear brand to hit the top end of its full-year growth target. The Jing Take There are some distinct commonalities between the brands that are soaring in the Chinese market in 2025: Lower-tier luxury pricing, non-trend-led product lines, and American style. More accessible premium brands with lower price points are gaining traction as global consumers adjust to inflationary pressures and shift their spending habits. China’s luxury sector saw its steepest downturn in 2024, with sales dropping by 18% to 20%, bringing the market back to its 2020 size. Post-pandemic spending has tilted toward travel and experiences, weakening demand for ultra-luxury personal goods categories. Brands offering “entry level luxury” at price points that feel aspirational yet attainable are resonating with Gen Z and younger middle-class consumers seeking style without overspending. From Birkenstock to Ralph Lauren, the brands succeeding in China seem to be less trend-oriented, and more focused on classic designs that stand the test of time. However, some cultural trends are feeding demand. On Weibo, the hashtag “Americanstyle” (美式风格) has amassed 140 million views, reflecting the rising popularity of Ivy League and preppy Americana aesthetics across China. These shifts highlight a convergence of macroeconomic caution and cultural aspiration. Consumers want products that symbolize lifestyle and identity but align with more measured spending. Accessible luxury is blossoming during this period of anemic growth as it hits the right balance of quality and cost, and occupies the sweet spot between fast fashion and high luxury. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Tapestry, Ralph Lauren, Birkenstock shine in China

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Tapestry, Ralph Lauren, Birkenstock shine in China